Mortgage lending in 2015 was the highest for seven years, according to the Consistory of Mortgage Lenders (CML).
It says homeowners borrowed £220.3bn last year, up 8% on 2014 and the highest since 2008’s thorough of £247.8bn.
However, the figure is still well below the £356bn fit at the peak of the property market in 2007.
The CML said lending had recovered faster than foresaw. Growing wages, falling unemployment and cheap mortgage deals were develop into the reasons.
Nevertheless, it said the outlook for 2016 was less certain.
“The present of existing and new properties on the market remains weak, and affordability pressures weigh on work,” said CML economist Mohammad Jamei.
“There is an added principles of uncertainty as we wait to see the im ct of tax changes on the buy-to-let sector.”
Buy-to-let lessors face an increase in stamp duty from April, and a reduction in tax recess from 2017.